Running your own business might sound like sunshine and rainbows – and sometimes it is – but the reality of being a solopreneur or freelancer means that you have to make money with your business. (Unless you have a trust fund, in which case congratulations.)

This type of work is not for everyone. 

The reality of being a solopreneur can feel, at times, isolating, and, other times, immensely energizing. As an entrepreneur I have to be self-motivated and focused, always. As a result, I prioritize getting more sleep, I avoid alcohol on weekdays, and I exercise and meditate more than ever before. My business is me, and I am my business. If I’m unfocused, the work doesn’t get done. 

I went into this ‘running a company’ business a bit blind. Let me share with you what I learned so you don’t have to go through the same steep learning curve that I did!

Don’t become an entrepreneur if you:

• Are a perfectionist. As a solopreneur you need to take action. You need to decide when something is ‘good enough’. You need to set your own deadlines, schedule and expectations. You have to be realistic with yourself on what you can accomplish on your own, you have to outsource when necessary, and you have to ruthlessly prioritize what you’re working on.
• Are super in debt. You’ll need to self-fund your business and pay your bills for a while. Credit cards are not the answer. Save 12 months worth of cushion, build your company on the side until it can replace your current salary, and then quit your job.
• Need someone to tell you what to do. You need to be self-directed. Mentorship is valuable. Talking to and co-working with other entrepreneurs is valuable. But don’t wait around for someone to hand you work.

The true cost of running your own business.

This path isn’t easy or straightforward. And it’s expensive. Here’s what you need to know about the true costs of running your business.

In 2022, at my corporate job I made $72,000 before taxes or about $55,862 after taxes. 

In 2024 I’m on track to bring in $93,000 in revenue for my business. When you factor in business expenses and self-employment taxes, my actual post-tax profit with my business is approximately $44,000. That’s $11,000 less than I made in corporate, not including the generous 401k match, paid time off, desk and education budget, and bonuses. Corporate jobs are appealing for a reason. It is a privilege to have a job that pays you and rewards you generously.

What you need to cover as a solopreneur

Liability insurance

• $1,500/year
• I pay for liability insurance for my yoga studio teaching, yoga retreats, and my marketing business.
• You’ll likely need to purchase both General Liability and E&O coverage.

Self-employment taxes

• You’ll need to pay quarterly taxes now that you’re self-employed.
• Set 33% of your monthly profit aside

Office space

• Most co-working spaces in Columbus charge $125+ per month.
• Or DIY office space through a network of coffee shops etc. << This is what I do.

Lawyer fees

• In 2024 I spent $660 on lawyer fees.
• $200-$400 per hour.

Accountant fees

• In 2024 I spent $1,500 on Accountant fees. This should decrease in 2025 as I’m now onboarded as their client.
• $100-$200 per hour.

Subscription services. I pay for:

• $80/month Loomly (social media scheduling tool)
• $12/month Canva (design tool)
• $75/month Yoga Alliance membership
• $200/year WordPress domain and hosting for two websites https://sarahtaylor.marketing/ and https://wonderingsoulsarah.com/ 
• $3/month Google storage

Healthcare

• Marketplace plan: Budget at least $600 for monthly healthcare premiums. Or get married lol. I swear healthcare is propping up the marriage industry these days.
• $210/session (out of pocket) OR $25 (co-pay) for bi-weekly therapy: Trust me you’ll need it to get over all the imposter syndrome you’ll experience as an entrepreneur.

What you need before you quit your job

• 6-12 months of savings
• A product that people actually want and will pay for. Only create a business around something that people both need and will pay for. Otherwise you’re wasting your time. 

What you may sacrifice short-term:

• Investing
• Saving
• Free time
• Your sanity

A look in my business: 2023 vs. 2024

• 2023 finances
  • Revenue: $58,000
  • Profit: $20,000
• 2024 finances
  • Revenue: $93,000
  • Profit: $44,000 (approximately)
• 2025 goals
  • Revenue: $150,000
  • Profit: $71,000

Reimagine the plan

My yoga business – Wondering Soul Yoga – started as a side hustle to 1) teach yoga locally and 2) run international yoga retreats. I have been obsessed with yoga since 2007 and with meditation since 2019, and it felt good to work on something so joy-inducing. Since establishing my yoga business in 2021 I’ve led three international yoga retreats and have taught at three local yoga studios.

My marketing business – Sarah Taylor Marketing – began in May 2023 as a way for me to keep my head and finances above water after losing my job in a layoff. But it quickly scaled to much more as I discovered my niche of helping small business owners and solopreneurs execute on their marketing priorities.

(P.S. My clients tend to be busy entrepreneurs who know marketing has value but who no longer have the time to do all the work necessary to succeed at it. They need me to step in so they can focus on bigger priorities like booking new business and selling their product.

P.P.S. If that sounds like you, send me an email at sarah@sarahtaylor.marketing.) 

In the last 18 months I have worked with a diverse range of clients (from commercial real estate to a pre-launch sleep app to business coaches) and have helped them bring their vision to life through social media marketing, blogs, brand identity discovery, market research, persona development, email campaigns and newsletters. You name it. Every day is different. Every day is new. 

In 18 months I went from losing my job to (almost) replacing my income from my corporate job. But you can’t put a price tag on happiness. I was miserable in my corporate job and now (most days) love what I do now.

My happiness is worth the pay cut.

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Let’s work together.

I’ve been writing and storytelling for as long as I can remember.

When you work with me, I capture the essence, the voice, of your brand (that’s you!) and translate that essence into real, tangible outputs that get you more leads, more sales, and more revenue.